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Dear All, I have a query as to whether referrals are internal or external source of recruitment... The book which I refer to HRM by Gary Dessler mentions referrals to be external source of recruitment but while discussing the same with colleagues as well as looking at some articles I get a view that it is an internal source of recruitment... Can anyone help me by answering to my query???
Thanks and Regards
Dny Pdvl
3rd March 2009 From India, Ahmadabad
Hi, It is very clear from the heading of your post "Employees Referrals" means reference internally from your existing employees in the organisation.

In which may be you are aware that organisation has the policy to give cash benefit to employees those play a vital role to find the talent as per industry / organisation requirement.

Your existing employees are known to exact workfoce requirement as per the orgnisational internal or external environment.

Hope this will make some sort of easiness to your query.


Vikas Kumar
3rd March 2009 From India, New Delhi
Employee referrals are an internal source of recruitment as the candidates are sourced by your own employees. The employees are paid a referral bonus once the referred candidate is selected and joins.
3rd March 2009 From India, Pune
Dear Pulsar180 and Nikitalk....

Thank You very much for your valuable inputs....

Your answers have increased by curosity regaarding this concept...Can I putforth another question to seniors , as to whether referrals and employee refferals can be used as synonyms terms????

I was browzing through a lot of books..and I came upon some surprising observations...

The foreign authors refer to refferals as a process whereby vacancies are promoted and filled by recommendations rather than by traditional methods such as direct classified job advertisements or by employing a headhunter.According to them refferals can be through current employees which we refer to as employee referrals...it can also be through different agencies.. experts...or other peer referral systems....

The Indian counterparts refer to referrals and employee referrals as synonymous terms...According to them employee refferals are internal sources of recruitment because its the employes of the organization who refer such candidates.....

From the above observation can we conclude that employee referrals are internal sources of recruitment but when we consider referrals per se it can be treated as an external source of recruitment.

Awaiting comments and Responses.....

Thanks and Regards
Dny Pdvl
4th March 2009 From India, Ahmadabad
Hi Initiator,

First of all I want apology from you and other respected members that I have answered your post without any deep thought.

Employee Referral is purely an external source of recruitment as you will recruit the talent from outside, recommended by your existing employees, on the other hand internal source of recruitment is on the basis of HRIS (Human Resource Information System) or human resource inventory, in which you have all the skill and knowledge sets of your employees within your organization.

Pls correct me If i am wrong this time also.


Vikas Kumar

3rd April 2009 From India, New Delhi
But I want to differ in this as we are discussing whether employee referral is an internal or external source, it can be internal because the company gets to know about the prospective candidates from an internal source i.e. existing employees.But hiring is done externally.
14th July 2012 From India, Bhubaneswar
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